Div 3Perpetuities and accumulations

Division 3—Perpetuities and accumulations 61—Abolition of rules against perpetuities and excessive accumulations (1) A disposition of property is not invalid— (a) because of the remoteness from the date of the disposition of the time an interest will, or may, vest in pursuance of the disposition; or (b) because, under the terms of the disposition, an interest is limited, for life, to a person who was unborn at the date of the disposition, with a remainder over to a child or other issue of that person; or (c) because it provides for or permits the accumulation of income. (2) A right or power in respect of property is not invalid because of the remoteness of the time it is to be, or may be, exercised. (3) A purported exercise of a right or power in respect of property is not invalid because of its remoteness from the time the right or power was created. 62—Court may order vesting of interests (1) If, 80 years or more after the date of a disposition of property, there remain interests in the property that have not vested, the court may, on application under this section, vary the terms of the disposition so that the interests vest immediately. (2) The court may, on application under this section, vary the terms of a disposition of property so that interests that cannot vest, or are unlikely to vest, within 80 years after the date of the disposition, will vest within that period. (3) If a disposition provides for the accumulation, or partial accumulation, of income from property over a period that will or may terminate 80 years or more after the date of the disposition, the court may, on application under this section, vary the terms of the disposition so that both capital and income will vest within 80 years from the date of the disposition. (4) In varying the terms of a disposition under this section the court should give effect to the spirit of the original disposition insofar as that is possible given that interests are to vest earlier than contemplated by the person who made the disposition. (5) An application under this section may be made by— (a) the Attorney-General; or (b) a trustee of property to which the disposition relates; or (c) the next-of-kin of a deceased person to whose estate the disposition relates; or (d) a person who has, under the terms of the disposition, an actual or potential interest in property subject to the disposition; or (e) a person who would, assuming the existence and continuance of lineal issue, be the ancestor of a person (as yet unborn) who would have an actual or potential interest in property subject to the disposition. (6) This section does not apply to— (a) a trust constituted by statute or letters patent; or (b) a trust of which the purposes are wholly charitable; or (c) a trust wholly for the provision of benefits of the following kinds, or of any one or more of the following kinds: (i) superannuation or retirement benefits; or (ii) medical, hospital or funeral benefits; or (iii) other benefits payable in the event of death, sickness or incapacity; or (d) a trust for the benefit of the members of an unincorporated association. (7) A disposition of property by will is, for the purposes of this section, taken to have been made at the date of death of the testator or testatrix. 62A—Preservation of rule in Saunders v Vautier This Part does not affect the principle under which a beneficiary who is sui juris may put an end to an accumulation and require distribution of his or her presumptive share of property subject to the accumulation1. Note— 1 The rule in Saunders v Vautier applies where there is more than one beneficiary, even though their several interests are not immediate but successive, provided they are unanimous in wishing to end the trust—See Jacobs on Trusts, 5th ed. para 2308.